Minnesota property tax exemption nightmare

The Minnesota Supreme Court has stripped a nonprofit of its state property tax exemption due to its commercial character and the limited scope of its charitable activity:

In the Red Wing case, the Minnesota high court ruled in a 4-3 decision that a child-care center doesn't qualify for tax exemption because it charges full price for all its services, offers no scholarships, retains the right to dismiss children if their parents are unable to pay the fees, and offers no discounts for participants whose fees were paid by county or tribal governments. As such, the center can't be exempt from paying property taxes.

Just a little reminder that just because an organization qualifies for federal tax exemption under 501(c)(3), that doesn't guarantee it tax exemption for all purposes under state law.

Blah.